Feature

Daimler's Race Against Itself

Quintessential German car maker is outpacing local rivals and has a chance to beat bullish forecasts, as its long-term investments pay off.

Daimler , the maker of Mercedes-Benz luxury cars, has moved into the passing lane and is threatening to put its German rivals in the rear-view mirror.

Thanks to a slate of popular car models and improving demand for trucks, Daimler's profit growth this year should outstrip that of Volkswagen , maker of the premium-priced Audi, and Bayerische Motoren Werke , whose BMWs are a staple of upper- and upper-middle-class neighborhoods. As a result, Daimler could be a bigger beneficiary of Europe's gradual recovery. The world's...